Ms Tenreyro has proved remarkably upbeat today, given the expectations that she would be a more cautious rate-setter than her confident predecessor Kristin Forbes, after suggesting that markets aren’t prepared for the possibility of faster-than-expected interest rate hikes.

While the latest Inflation Report revealed the BoE is targeting just two more hikes in the next three years, Ms Tenreyro believes the uncertainty created by the Brexit referendum could make it necessary for policy to be tightened outside of expectations.

She said: “People up until recently thought that Brexit meant monetary policy would remain highly accommodative and interest rates would stay low forever.

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“It might require an adjustment either way, and it’s not obvious. That’s something to be prepared for.”

This is helping fuel a Sterling rebound after yesterday’s second estimate of fourth-quarter GDP revealed slower business investment and service sector growth than expected.

The Office for Budget Responsibility (OBR) also downwardly revised its forecasts for productivity and wage growth, further incentivising investors to sell out of the pound.

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The BoE is targeting just two more interest rate hikes in the next three years, it was revealed

Speculation and the comments of Ms Tenreyro have helped draw focus away from the latest consumer confidence data, which has shown household levels of optimism are as low as they were shortly after the EU referendum.

Data collected by YouGov and the Centre for Economic and Business Research (CEBR) has showed a sharp drop in sentiment both on the month and the year, with the index falling to 106.6 from 109.3 last month and 109.1 12 months ago.

YouGov head of reports Stephen Harmston said: “There have been falls across the board – from how secure people feel in their jobs to what they think house prices will do – and the increased cost of living has put a big squeeze on people’s household finances.

“Overall, these are a gloomy set of consumer confidence figures.”

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Meanwhile, the US dollar is being kept weak by the fallout from Wednesday evening’s release of Federal Open Market Committee (FOMC) meeting minutes, which revealed a large split between policymakers regarding the issue of inflation.

Some argue that weakness in inflation is just temporary and monetary policy must be tightened regardless to prevent price growth overshooting the target once it rebounds.

Others claim that sluggish inflation is a more systematic problem that could be worsened with additional tightening.

Markets still expect to see another interest rate hike next month, but the outlook for next year has become more uncertain.

With no new developments until Markit PMIs for November this afternoon, USD is finding little support, keeping the GBP/USD exchange rate on the rise.